Three measures of investment center performance are income from operations, rate of return on investment, and residual income.

Question

Quizplus · Accepted Answer

These are indeed three common measures of investment center performance. Income from operations measures the profitability of the center's day-to-day activities, while rate of return on investment (ROI) measures the overall return earned on the center's assets. Residual income is a measure of economic profit that compares the center's actual income to the minimum required return on its assets.

Three Measures of Investment Center Performance Are Income from Operations